Massachusetts Republican Senate candidate John Deaton has indicated his intention to hold the U.S. Securities and Exchange Commission (SEC) accountable for its role in wiping out $15 billion from XRP retail investors.
In a September 16 interview on the “Good Morning Crypto Show,” the lawyer made it clear that he’s ready to continue his battle with the SEC until retail investors receive the compensation they deserve.
XRP Investors Left Behind by SEC Actions
Deaton, who represented more than 75,000 XRP token holders as an amicus curiae or “friend of the court” in the SEC’s lawsuit against Ripple Labs, did not mince words when discussing the financial harm caused by the agency’s aggressive litigation against the crypto firm.
He claimed that the SEC’s overreach and “misconduct” cost thousands of XRP holders as much as $15 billion when the coin’s value plummeted as a result of the lawsuit.
Furthermore, he added that his clients “do not accept the SEC’s apology” for its handling of the case. This was in response to the agency’s recent clarification of its use of the term “crypto asset securities” in its various lawsuits against digital asset companies.
In a footnote in its amended complaint against Binance, the Commission said it regretted any confusion it may have caused from its use of the term. Deaton called it “intentional misconduct” and demanded the firing of those at the SEC responsible for making such decisions.
The attorney has consistently argued that the Commission’s actions hurt everyday investors. He suggested that the financial blow caused to XRP holders by the watchdog’s case is something for which it must be held accountable.
He added that he is awaiting the results of an Inspector General (IG) investigation into the matter, which could potentially open the door for further legal action on behalf of XRP investors and possible reparations for losses they may have suffered.
A Senate Race with High Stakes
In his campaign for the U.S. Senate, Deaton has positioned himself as a champion of the ordinary man, focusing heavily on transparency and accountability from government agencies.
He says his criticisms of the SEC is a reflection of his broader view on regulatory overreach in the financial sector. Additionally, he believes the regulator’s handling of crypto is indicative of a system that prioritizes enforcement over protecting everyday investors.
During the interview, the former Marine reiterated plans to introduce laws to clarify the distinction between commodities and securities in the crypto space. This, he argued, would protect retail digital asset holders from regulatory overreach in the future.
